Question
Your client decides to invest $1.4 million in Blandy stock and $0.6 million in Gourmange stock. What are the weights for this portfolio? What is
Your client decides to invest $1.4 million in Blandy stock and $0.6 million in Gourmange stock. What are the weights for this portfolio? What is the portfolios beta? What is the required return for this portfolio?
Risk free rate is 4% and Market return is 6%
| Year | Blandy | Gourmange |
| 1 | 26% | 47% |
| 2 | 15% | -54% |
| 3 | -14% | 15% |
| 4 | -15% | 7% |
| 5 | 2% | -28% |
| 6 | -18% | 40% |
| 7 | 42% | 17% |
| 8 | 30% | -23% |
| 9 | -32% | -4% |
| 10 | 28% | 75% |
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Cloud Mining
Authors: Patrick Ejeke
1st Edition
979-8410758710
